What Is Inward Remittance? Regulations, Receiving Methods, and Key Updates in 2026

What is inward remittance, and why is this cash flow increasingly important to many Vietnamese families? This is a common question for those with relatives living, working, or studying abroad. This article helps you understand the concept of inward remittance, its sources, common receipt methods under current regulations, and important tips for receiving money safely and conveniently.

1. What Is Inward Remittance?

Inward remittance (or simply remittance) refers to money transferred from abroad to Vietnam, commonly sent by overseas Vietnamese to beneficiaries in the country. These funds can be used for various purposes, such as covering living expenses, saving, investing, or meeting other lawful needs in accordance with regulations. Remittances can be transferred through authorized credit institutions, enterprises providing foreign currency receipt and payment services, or carried by individuals upon entry into Vietnam as prescribed. Recipients can receive the funds in foreign currency or Vietnamese dong, depending on regulations and their needs.

In Vietnam, remittance transfers and receipts are encouraged by the State and are conducted through organizations and enterprises licensed to provide these services in accordance with foreign exchange laws. Decision No. 170/1999/QD-TTg, issued by the Prime Minister, is one of the foundational documents for the policy encouraging overseas Vietnamese to transfer money back home.

1.1. Sources of Remittances

• Overseas Vietnamese (Viet Kieu).
• Vietnamese workers working abroad under labor contracts.
• International students and Vietnamese experts working abroad who send their savings to their families.

1.2. Benefits of Remittances for Recipients and the Economy

• Provide additional financial resources for families' living, educational, and medical expenses.
• Create capital for investment, business activities, and savings.
• Contribute to the foreign currency supply and support the national balance of payments.
• Promote domestic consumption and certain investment activities.

1.3. Who Can Receive Remittances?

According to Clause 2, Article 2 of Decision No. 170/1999/QD-TTg, a remittance recipient (referred to as a "beneficiary") is an individual in Vietnam who receives foreign currency transferred by overseas Vietnamese or foreigners. Under Article 6 of this Decision, beneficiaries have the right to:

• Receive funds in foreign currency or Vietnamese dong as requested.
• Sell foreign currency to authorized credit institutions, deposit it into foreign currency savings accounts, or transfer it to personal accounts.
• Under Clause 7, Article 4 of the Personal Income Tax Law No. 109/2025/QH15, which takes effect on July 1, 2026, income from remittances is exempt from personal income tax.

1.4. Current Regulations on Remittances in Vietnam

Remittance transfers and receipts in Vietnam are currently governed by the following legal documents:

• Decision No. 170/1999/QD-TTg, dated August 19, 1999, issued by the Prime Minister on encouraging overseas Vietnamese to transfer money back home, as amended and supplemented by Decision No. 78/2002/QD-TTg and consolidated in Consolidated Document No. 06/VBHN-NHNN.
• Ordinance on Foreign Exchange No. 28/2005/PL-UBTVQH11, as amended and supplemented by Ordinance No. 06/2013/UBTVQH13.
• Decree No. 70/2014/ND-CP, dated July 17, 2014, issued by the Government to provide guidance on the implementation of the Ordinance on Foreign Exchange.
• Decree No. 89/2016/ND-CP, dated July 1, 2016, on the conditions for foreign currency exchange agency activities and foreign currency receipt and payment services, as amended and supplemented by Decree No. 23/2023/ND-CP.
• Circular No. 34/2015/TT-NHNN, providing guidance on foreign currency receipt and payment services, as amended and supplemented by Circular No. 75/2025/TT-NHNN.

2. Differences Between Remittances and International Commercial Transfers

Many people confuse remittances with international commercial transfers. However, these are two different types of transactions with distinct purposes and characteristics.

3. Common Methods of Transferring Remittances Today

According to Article 4 of Decision No. 170/1999/QD-TTg, there are three methods of transferring remittances to Vietnam:

• Transferring foreign currency through authorized credit institutions.
• Transferring foreign currency through enterprises providing international postal financial services.
• Carrying the funds into Vietnam in person.

Note: When an individual enters Vietnam carrying foreign currency on behalf of someone else overseas for a recipient in Vietnam, they must declare the amount to customs at the border checkpoint. According to Clause 1, Article 2 of Circular No. 15/2011/TT-NHNN, cash foreign currency must be declared if it exceeds 5,000 USD (or the equivalent amount in another foreign currency), or if the amount of Vietnamese dong exceeds 15,000,000 VND

Each country has its own money transfer procedures, fees, and requirements that you should understand before making a transaction. You can refer to the following detailed guides for specific markets:

• How to Transfer Money from the US to Vietnam
• How to Transfer Money from South Korea to Vietnam
• How to Transfer Money from Japan to Vietnam
• How to Transfer Money from Germany to Vietnam

4. Tips for Receiving Remittances Safely and Avoiding Risks

To ensure that you receive remittances safely, keep the following points in mind:

• Verify the sender's information and transaction code before proceeding with the next steps.
• Prioritize official channels, such as authorized credit institutions or licensed international postal financial service providers, instead of using channels with unclear origins.
• Be cautious of requests for OTP codes, passwords, login information, or advance payments to unidentified parties under the pretext of "receiving fees," "taxes," or "disbursement fees."
• Check the exchange rate at the time of the transaction, as rates may change over time and differ between banks.
• Keep transaction receipts and documents for reference when necessary.
• For funds carried into Vietnam in person, complete all required customs declaration procedures in accordance with regulations to avoid violations.

5. Criteria for Choosing a Suitable Bank to Receive Remittances

When choosing a bank to receive remittances, you can consider the following criteria:

• Transaction Processing Speed: Processing time directly affects the recipient's experience, especially when the funds are needed for urgent expenses. Some banks now support receiving remittances online through digital banking apps, helping reduce the time required compared to transactions at the counter.
• Branch Network and Receipt Channels: A wide branch network and various receipt channels, such as transaction counters, digital banking apps, and international money transfer partners, make receiving money more convenient, especially for people living outside major cities.
• Fee Transparency: Check remittance receiving fees, foreign currency conversion fees, and other related charges before making a transaction.
• Foreign Currency Exchange Rate: Exchange rates may vary between banks at different times. You should check the publicly listed exchange rates at the time of the transaction to obtain accurate and up-to-date information.

6. Frequently Asked Questions About Remittances (FAQ)

1. Is receiving remittances subject to personal income tax?
No. Income from remittances is exempt from personal income tax under current regulations.

2. What documents are needed to receive remittances?
Recipients usually need to present personal identification documents (citizen identity card or passport) and transaction information (transfer code and sender's name) for verification at the credit institution or payout service provider. Specific document requirements may vary depending on the receipt method and service provider.

3. Do I need to declare foreign currency to Customs if I carry it on behalf of someone else when entering Vietnam?
Yes. Individuals entering Vietnam who carry foreign currency on behalf of a domestic beneficiary must declare it to customs at the border checkpoint if the amount exceeds USD 5,000 (or the equivalent in another foreign currency) or VND 15,000,000.

4. Can I receive remittances in Vietnamese dong, or must I receive them in foreign currency?
Yes, you can receive remittances in Vietnamese dong. Under current regulations, beneficiaries can receive funds in either foreign currency or Vietnamese dong, depending on their needs and the applicable transaction method.

Inward remittance is not only money transferred from abroad but also an important financial resource that is encouraged by the State and protected under current laws. Understanding the available receipt methods and potential risks can help your family feel more secure when making transactions. You can explore SeABank's inward remittance service for a more convenient experience.